CreditMarket Index: effective rates on auto loans went up – to 43.71%

March, 12 2012 13:32
Index.KreditMarket

CreditMarket Car Loan Index increased by 1.53% – to 43.71% (an effective rate per annum, in UAH). The information is as of 12 March 2012.

Denys Rakovsky, Sales Director at KreditMarket: “Automobile sellers keep up offering extensively to buy automobiles on special conditions produced last year or in 2010. One of the conditions is sure granting of an auto loan. Considering an increased demand on automobiles, banks keep on raising slightly the cost of the loans.

For the past two weeks since the previous index measurement, four banks from our CreditMarket Car Loan Index have modified their terms and conditions for granting of auto loans, mainly towards their hardening. Totally, five insignificant changes resulted in the increase on the mean effective rate on auto loans by 1.53%.

We do not expect any major changes in a mean effective rate for this type of crediting in the short term.”

Information

CreditMarket Car Loan Index is calculated on the basis of credits granted at 70% of the cost of a new car for a 3-year term. Promotional offers and ones subsidized by sellers are excluded. The redemption scheme - annuity, in case of no proposals - a serial loan. Currency – UAH. Principal – up to UAH80,000 UAH (the cost of a car – UAH114,300).